How to Determine Mortgage Digital Advertising ROI
Whether you’re working with an agency like RMS or you’re bootstrapping your mortgage digital advertising efforts, determining your ROI on digital advertising is something you need to be able to do.
Identifying Key Performance Indicators (KPIs) is a great way to kick things off. We’re sharing some of the most common KPIs as it pertains to digital lead generation— and yes, there are more—but if you’re just dipping your toes in the water, this is a great starting point.
Knowing these KPIs inside and out will really help you refine your mortgage digital advertising and refine it as you go. (Also, if you missed our last blog about determining a mortgage digital advertising budget, check that out here.)
Mortgage Digital Advertising KPIs
- Cost Per Lead. The great thing about most mortgage digital advertising platforms (FB, IG, Adwords, LinkedIn) is that they automatically calculate this number for you.
- Lead-to-Close Ratio. The lead-to-close ratio is calculated by dividing the number of leads by the number of leads that were closed. This ratio can inform you of the quality of the leads your marketing team hands over.
- Return on Ad Spend (ROAS). Calculating the profit made through an ad and the total cost spent on creating the ad. The simple equation is revenue divided total ad spend, multiplied by 100
- Total Cost Per Acquisition. To learn how much you spend to acquire customers, not leads, cost per acquisition is the KPI you’ll want. It is calculated by dividing your total marketing spend (ad spend and cost for services) by the number of acquired customers for your marketing efforts.
ROI on All Digital Marketing Efforts
So, we’ve talked about calculating ROI on mortgage digital advertising spend. But how do you calculate the ROI on your other digital MARKETING efforts that may not be back by ad spend?
Let’s talk about how to measure ROI on your digital content. Watch the video below for a rundown of some of the key numbers and metrics to be paying attention to.
Here are some numbers you should be paying attention to:
- Traffic to website
- Click-through rates on calls to action
- Average session duration on website
- Average pages per session
- Social media engagement on posts
- Social media reach
- New followers
- Email engagement
- Opt-ins on website (book a call, downloads, subscribe)
- Opt-ins from calls to action (on social media posts)
- Email open rate
- Email click-through
- New email subscribers
- Conversion to client through website, social media, and email marketing efforts.
Calculating the true ROI on digital marketing is an ongoing process, which is why it’s important to review your analytics from every channel frequently.
NOTE: Sometimes ROI alone isn’t the best number to use to measure the success of your marketing efforts. For example, you might have a follower or email subscriber for three years before they become a client, but they have been reading your content regularly and clicking through on your calls to action in your content.
What is a benchmark for conversion rate on mortgage digital advertising and marketing? The answer is that it depends on the platform and the industry.
According to Wordstream.com, the average conversion rate on Facebook ads for consumer services was reported at 9.96% in August 2020. For real estate, a 10.68% conversion rate was reported during the same time frame.
Wordstream.com also reported Google search ads at a 6.64% average conversion rate for consumer services and 2.47% for real estate in 2020.
Hubspot reported email marketing as one of the most lucrative digital methods in 2020 with an average of $38 gained to $1 spent, making their ROI an awe-inspiring 3,800%. It’s important to note that your ROI on email marketing largely depends on your efforts, content, and the list of contacts that you are nurturing being ideal for what you are selling.
If you have any questions about your digital advertising or marketing, click here to book a complimentary consultation with our team.